Excise duty verification in a manufacturing company!!!

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Rajesh (Querist)

15 December 2011 Dear Experts,

I am put to audit a manufacturing company specifically focusing on the Excise Duty.

1)Please guide me on how to verify that all the Cenvat credit has been properly utilised?
2) What are the documents i have to see and cross verify it?
3) Is it sufficient if i compare with
ER-1 return and with Cenvat invoices?
4) What are the returns that has to be filed for a manufacturing company which has turnover around 70 to 100 crores?
a) monthly returns
b) quarterly returns
c) half yearly returns
d) annual returns.

Thank you for the everyone who help me in this.
I appreciate everyone for their efforts
Thanks & Regards,
Rajesh.

NILESHKUMAR

NILESHKUMAR (Expert)

16 December 2011 Dear Rajesh ,

1) for verification of cenvat records, please compare purchase register and provision of Cenvat credit as per the books,
compare the same monthwise as per the cenvat credit register and ER 1 return of the manufacturer.
2) documents to see are original duty paying invocies or bill of entry and relavant Goods receipt note of the goods for the corresponding invocie, pl check GRN qty and invocie qty. if there is shortage, canvat has to availed proportaionatley. No cenvat credit can be availed on photcopy or xerox.
3) yes and check major input opening balance, recipt, utilised and closing balance.
4)ER 1, ER 4, ER 5, ER 6 AND ER 7 , this are various returns which are required to file.
5) in case of credit relating to capital goods received 50% credit allowed in year for which capital goods recieved and remaining 50% credit can be availed on next Financial Year. Also check 50% creidt provision as per books of accounts and 50% credit availed as per Cenvat register and monthly ER 1 return of excise.

Hope this is cllear in case of any confusion please revert tomem

THANKS
nileshkumar
B.Com. LLM, MBA (Fin) CWA.

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